How do I manage HR for a software company in Myanmar?

What this looks like in practice

A Myanmar software company is typically 5–80 engineers, often servicing overseas clients (Singapore, Japan, Australia). The Shops & Establishments Act applies — 44-hour week, 1-day weekly rest. Most engineers are salaried with hybrid or fully-remote arrangements. SSB triggers at 5, ESDL applies from Day 1, IP assignment and NDA clauses are non-negotiable for client work. PIT brackets and the SSB MMK 300,000 cap are the same as for any other sector.

Step-by-step setup

1. Register the company with DICA on MyCO; consider Yangon Tech Park for tax incentives if eligible.
2. Issue ESDL appointment letters with mandatory IP-assignment, NDA, non-solicit and (carefully drafted) non-compete clauses.
3. Adopt remote-friendly policies — equipment provision, internet allowance, working hours expectations, async communication norms.
4. Run cloud payroll with PIT and SSB; remit by the 15th.
5. Track time/attendance pragmatically — most software employers use project-time logs rather than biometric clock-in, but maintain a basic attendance register for inspections.
6. Set up performance reviews twice a year and a separate compensation review annually.
7. Document equity/options — Myanmar has no formal ESOP statute, so foreign-parent options need careful drafting and PIT treatment at exercise.

Tools, templates and costs

• Cloud HRMS: MMK 300,000–700,000/month for 30–60 engineers.
• Per-engineer cost: MMK 1M–4M/month gross depending on seniority (Yangon).
• Equipment: laptop budget MMK 1.5M–3M one-off per engineer; internet allowance MMK 30,000–50,000/month.
• EOR option: USD 200–500 per engineer per month (Multiplier, Deel, Rippling have Myanmar coverage).
• Templates: ESDL contract with IP-assignment, NDA, remote-work policy, ESOP letter template.

EOR vs direct hire

For pre-DICA foreign founders or for the first 1–3 Myanmar engineers, EOR services (Multiplier, Deel, Rippling) provide compliant employment without local entity overhead — typically USD 200–500 per engineer per month. The break-even versus direct hire is around 5–10 engineers and 12 months of operation. Once you incorporate locally, EOR is rarely cost-justified.

Pitfalls to avoid

• Engineers paid via foreign-currency invoices as "contractors" — full-time work, full-time tax exposure.
• No IP assignment clause — client deliverables remain personal IP by default.
• Skipping SSB at 5+ — engineers are still IPs.
• USD-denominated salaries without Central Bank approval — convert at CBM reference rate for PAYE.
• No payslips — even fully-remote engineers need them under the Payment of Wages Law.

Related: onboarding a remote-first team, what is an EOR in Myanmar, and BPO/IT challenges.